Hesai(US:HSAI) Guotai Junan Securities·2024-08-21 05:12Investment Rating - The report assigns an "Accumulate" rating to the company [3][21]. Core Insights - The gross profit margin continues to improve significantly, with a breakeven point approaching. New orders secured domestically and internationally ensure strong revenue growth in 2025 and 2026, with deep ties to Robotaxi customers [2][3]. Summary by Sections Performance Overview - The company reported a revenue increase of 4.2% year-on-year to 460 million RMB in Q2, with total lidar shipments rising by 66.1% to 86,526 units, including a 76.8% increase in ADAS product shipments to 80,773 units. The comprehensive gross margin improved by 15.3 percentage points year-on-year to 45.1% [3][12]. - The quarterly net loss narrowed significantly by 32.6% to 70 million RMB, driven by high gross margins from product upgrades and increased delivery volumes [3][12]. Earnings Forecast and Investment Recommendations - The revenue forecasts for FY2024E-FY2026E have been slightly adjusted to 21.5 billion, 37.7 billion, and 60.3 billion RMB, respectively. The GAAP net profit estimates are adjusted to -2.8 billion, 3.8 billion, and 10.8 billion RMB for the same periods [3][14]. - The target price is set at $10.73, based on a PS ratio of 4.5X for FY2024, maintaining the "Accumulate" rating [3][14]. Customer Orders and Market Position - The company has secured design collaborations with 19 global OEMs for ADAS, with significant orders expected to ramp up starting in 2025. This includes exclusive mass production partnerships with leading domestic and international automakers [3][14]. - The company is deeply tied to major domestic Robotaxi players, which is expected to drive strong revenue growth in the coming years, particularly with the planned deployment of 100,000 units by Baidu [3][14].